Connecticut Earns 40/100 in New Financial Transparency Ranking

A new national report evaluating how openly states report their finances has given Connecticut a Financial Transparency Score of 40 out of 100, ranking 50th among the 50 states.

The score comes from Truth in Accounting's newly released Financial Transparency Score 2026 report, which examines how effectively states disclose their true financial condition through audited financial reports.

The report evaluates each state's Annual Comprehensive Financial Report (ACFR) using several measures of financial transparency, including audit quality, timeliness of reporting, retirement liability disclosure, pension data accuracy, and whether financial statements are distorted by complex accounting practices. States can earn up to 100 points by meeting established transparency standards.

According to the report, transparency scores declined nationwide compared to the previous year, with many states facing challenges related to delayed financial reports, poor audit outcomes, and incomplete disclosure of retirement liabilities.

Connecticut received the lowest transparency score in the nation. The state lost 25 points because its largest pension plan did not issue a separate audited financial report. Connecticut also received zero points in the balance sheet distortion category due to significant deferred pension and retiree healthcare accounting items that obscure the state's financial position.

The report places significant emphasis on audit quality, with half of the total score based on whether a state's financial statements receive a clean opinion from an independent auditor.

Nationally, New Mexico and West Virginia earned the highest transparency scores, each receiving 87 out of 100 points. Indiana, New York, and Maryland rounded out the top-performing states. Connecticut ranked last in the nation, followed by Georgia, North Carolina, California, and Illinois.

Truth in Accounting believes transparent financial reporting allows taxpayers, lawmakers, investors, and other stakeholders to better understand the financial condition of their state government and make informed decisions based on accurate information.

Residents can view the complete Financial Transparency Score 2026 report and state-by-state rankings at https://www.truthinaccounting.org/news/detail/financial-transparency-score-2026